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Question: An actuary is expected to

Options:

  1.  Make an exact forecast of the future liabilities of policies
  2.  Make a reasonable forecast of the future liabilities of policies
  3.  Calculate the premium required to cover a risk on a long-term basis
  4.  Find the probability of an insured event to happen in non-life policies
  5.  All the above statements are incorrect

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2. Make a reasonable forecast of the future liabilities of policies

An actuary is expected to make a reasonable forecast of the future liabilities of policies.


Explanation:

An actuary is an professional that uses statistics to forecast/predict the likelihood of certain events occurring in the future.

They analyze the financial costs of risk and uncertainty and help businesses and clients develop policies that minimize the cost of that risk. They're expected to make a reasonable forecast of the future liabilities of policies.

They use mathematics, statistics, and financial theory to assess the risk of potential events.

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